Incentive-based physician compensation models

J Ambul Care Manage. 1999 Jul;22(3):36-46. doi: 10.1097/00004479-199907000-00008.


Measuring productivity is important for determining appropriate physician compensation, as indicated by the current emphasis on benchmarking. A combination of benchmarking and individual profiling data may prove useful for developing productivity-based compensation plans. However, while tying physician compensation to multiple indicators is prudent, it is also cumbersome, since indicator values may not be comparable. A compensation model that scales indicators to a common measure, such as a relative value scale, may allow the visual representation of resource utilization, and peer comparisons can assist in adjusting to the accountability demanded by managed care.

MeSH terms

  • Budgets
  • Capitation Fee
  • Efficiency, Organizational / economics*
  • Humans
  • Models, Econometric
  • Patient Satisfaction
  • Physician Incentive Plans / economics*
  • Practice Management, Medical / economics
  • Quality Indicators, Health Care
  • Relative Value Scales
  • Salaries and Fringe Benefits*
  • United States